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HINDALCO - Hindalco Industries News Story

₹478.75 -4.5  -0.9%

Last Trade - 24/09/21

Sector
Basic Materials
Size
Large Cap
Market Cap £10.60bn
Enterprise Value £15.26bn
Revenue £14.63bn
Position in Universe 49th / 3149

India's silver imports could tumble as scrap supplies surge, importers say

Thu 20th August, 2020 10:51am
By Rajendra Jadhav
    MUMBAI, Aug 20 (Reuters) - India's silver imports are likely
to fall by more than 40 percent from a year ago to the lowest
level in eight years, with investors booking profit by selling
stocks after local prices rallied to a record high this month,
leading importers said.
    Lower imports by the world's biggest silver consumer could
weigh on global prices  XAG=  that have risen more than 50% so
far in 2020.
    "Investors, who bought silver at higher levels, got an
opportunity to exit after a long time. For some, even after a
decade," said Chirag Thakkar, CEO of Amrapali Group Gujarat, a
leading silver importer.
    Their selling will reduce import requirement for 2020 to
3,000 tonnes, the lowest since 2012, he said.
    India imported 5,598 tonnes of silver in 2019, according to
data compiled by Refinitiv GFMS. The country fulfills most of
its silver requirement through imports.
    Investors are sceptical whether silver will hold recent
gains, said Prithviraj Kothari, managing director of RiddiSiddhi
Bullions.
    "There is rush from sellers but very few buyers are there.
Sellers are forced to accept hefty discount," he said.
    Local silver futures  MSVc1  were trading around 66,800
rupees per kg on Thursday afternoon after hitting a record high
of 77,949 rupees earlier this month.
    But in the spot market silver was offered at discount of
more than 5,000 rupees per kg due to weak demand, Thakkar said.
    India's silver imports in the first seven months of the year
nearly halved from a year ago to 1,900 tonnes and it is unlikely
to rise again unless prices correct sharply, said a Mumbai based
dealer with a bullion importing bank.
    Demand from jewellery and industry is negligible as millions
of people have lost or have to accept a pay cut, said the
dealer, adding: "Sentiments are very weak in retail market."

 (Reporting by Rajendra Jadhav)
 ((rajendra.jadhav@thomsonreuters.com; +91-22-68414378 ; Reuters
Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net))
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